Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Old 02-09-2024, 04:08 PM   #121
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,329
Quote:
Originally Posted by Earl E Retyre View Post
I was not questioning that you got the notice ... I was just wondering why JPM calls certain CDs and not others. One would think that if they have higher coupons that they would cancel them as well. I do not understand how banks make these decisions.
As I understand it (loosely) capital reserve requirements for liabilities nearing maturity are more strict. Calling a month or two before maturity reduces their reserve requirements. We wondered why many corporates had 1st call dates a few months from maturity so I researched and learned about the reserve rule. So even though they have higher rate bonds outstanding the call is a reserve related action.
jazz4cash is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-09-2024, 04:59 PM   #122
Thinks s/he gets paid by the post
 
Join Date: Jan 2019
Location: Sunny California
Posts: 2,624
That makes sense, I always wondered why they did that.
RetiredAndLovingIt is online now   Reply With Quote
Old 02-21-2024, 07:11 AM   #123
Full time employment: Posting here.
jldavid47's Avatar
 
Join Date: Mar 2019
Posts: 765
12 and 18 month brokered non-callable CD rates are getting to 5% an above again. At Schwab this morning they have these available:

12 month
Wells Fargo Bank, Nt SD 5.15% CD 02/26/2025, CUSIP 949764ML5
Bank of America, Ntn NC 5.1% CD 02/28/2025, CUSIP 06051XAU6
West Bank IA 5.1% CD 02/28/2025, CUSIP 95144PHB0
Brookline Bancorp, I MA 5.1% CD 02/27/2025, CUSIP 11373QLK2

18 Month
Bank of America, Ntn NC 5% CD 08/29/2025, CUSIP 06051XAT9
Valley Ntnl Bancorp NJ 5% CD 08/27/2025, CUSIP 919853KQ3
Wells Fargo Bank, Nt SD 5% CD 08/27/2025, CUSIP 949764MH4
jldavid47 is offline   Reply With Quote
Old 02-21-2024, 07:29 AM   #124
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dash man's Avatar
 
Join Date: Mar 2013
Location: Limerick
Posts: 5,655
I just got notified of my 5.45% Bank of America CD being called on March 6.
Dash man is offline   Reply With Quote
Old 02-22-2024, 02:04 PM   #125
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 2,343
I just applied to Lafayette Federal CU. I just had to join a 3rd party org for $10. Wired a nice chunk Vanguard cash the next day. Open 1 year 5.56% APY, 2 years 5.20% APY and 3 years 5.10% APY. Will be transfering some left over IRA money which matured a couple weeks ago. Customer service was pretty helpful. There is a long wait to speak to one, though.
__________________
I look to the present moment because that's where I live my life.
MJ is offline   Reply With Quote
Old 02-22-2024, 02:22 PM   #126
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Texas
Posts: 10,944
Quote:
Originally Posted by jldavid47 View Post
12 and 18 month brokered non-callable CD rates are getting to 5% an above again. At Schwab this morning they have these available:

12 month
Wells Fargo Bank, Nt SD 5.15% CD 02/26/2025, CUSIP 949764ML5
Bank of America, Ntn NC 5.1% CD 02/28/2025, CUSIP 06051XAU6
West Bank IA 5.1% CD 02/28/2025, CUSIP 95144PHB0
Brookline Bancorp, I MA 5.1% CD 02/27/2025, CUSIP 11373QLK2

18 Month
Bank of America, Ntn NC 5% CD 08/29/2025, CUSIP 06051XAT9
Valley Ntnl Bancorp NJ 5% CD 08/27/2025, CUSIP 919853KQ3
Wells Fargo Bank, Nt SD 5% CD 08/27/2025, CUSIP 949764MH4
I've have been (and will be) buying them as my current CD's mature. About one a month from now through the end of the year. Bought one this past Monday. Next will be first week of March.
__________________
20's "something" mind, trapped in a 70's "something" body
Car-Guy is offline   Reply With Quote
Old 02-22-2024, 02:37 PM   #127
Thinks s/he gets paid by the post
 
Join Date: Sep 2002
Posts: 1,178
Quote:
Originally Posted by Car-Guy View Post
I've have been (and will be) buying them as my current CD's mature. About one a month from now through the end of the year. Bought one this past Monday. Next will be first week of March.
I picked up a bunch of these today also for some of our family members and my ST cash stash.
JDARNELL is online now   Reply With Quote
Old 02-23-2024, 10:24 AM   #128
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2008
Posts: 7,438
Has anyone noticed how long it takes for Fidelity to transfer a matured CD to your cash account?

I have one that matured today and it shows "Processing" for the CD and the interest, as of around 8:30AM PST.

Since its end of the week, it would be nice to be able to at least initiate a transfer back to my bank.
explanade is offline   Reply With Quote
Old 02-23-2024, 10:30 AM   #129
Thinks s/he gets paid by the post
njhowie's Avatar
 
Join Date: Mar 2012
Posts: 3,931
Quote:
Originally Posted by explanade View Post
Has anyone noticed how long it takes for Fidelity to transfer a matured CD to your cash account?

I have one that matured today and it shows "Processing" for the CD and the interest, as of around 8:30AM PST.

Since its end of the week, it would be nice to be able to at least initiate a transfer back to my bank.

It will show that Processing message until tomorrow. Regardless, it won't let you transfer those funds until they settle and that won't be today.
njhowie is offline   Reply With Quote
Old 02-23-2024, 10:46 AM   #130
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Texas
Posts: 10,944
^^^^^
Schwab is usually the same day. When it's not, it's because the offering bank has not transferred the funds. (So they tell me )
__________________
20's "something" mind, trapped in a 70's "something" body
Car-Guy is offline   Reply With Quote
Old 02-23-2024, 11:51 AM   #131
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2008
Posts: 7,438
Quote:
Originally Posted by njhowie View Post
It will show that Processing message until tomorrow. Regardless, it won't let you transfer those funds until they settle and that won't be today.
I went to chat and they told me the principal is available but the interest will be available tomorrow.

So I initiated a transfer to my credit union.

Guess we will see.
explanade is offline   Reply With Quote
Old 03-15-2024, 05:56 PM   #132
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Texas
Posts: 10,944
I got one today as another I had just matured.

The new only pays 5.1% which is .3% less than the one that just matured. That .3% works out to ~$750 difference in a year. Not a big deal but I'm sticking with the plan.... At least for now.
__________________
20's "something" mind, trapped in a 70's "something" body
Car-Guy is offline   Reply With Quote
Old 03-15-2024, 08:07 PM   #133
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2008
Posts: 7,438
So I may have to do an early withdrawal of a brokerage CD because my taxes will be much higher than anticipated, due to doing too much traditional to ROTH 401k conversions and a late in the year stock sale.

Quick Google says there are no early withdrawal penalties but you may get less than the principal because I would have to sell on the secondary market?

Has anyone had to do this? I have it at Fidelity, it's a BofA CD that doesn't mature until mid June.


1) I'm wondering if I have to put it out for sale in the secondary market through Fidelity and get bids back.

2) Or would it be based on the value displayed? For instance, all these brokerage CDs show a value under $100 so presumably it would be some value below the principal.

Not only a loss of months of interest but some of the principal, if that is the way it works, say for instance 98 cents on the dollar?



I have another CD with them that matures in October and is also a lower APY. So the price displayed slower, about 30 cents lower. Do these prices reflect how near it is to maturity or the APY or both?

I guess I could always sell some more equities but that probably means chances of ending up in a higher tax bracket for TY24. (that is more or less what happened in TY23, hence the unexpected higher taxes).
explanade is offline   Reply With Quote
Old 03-16-2024, 08:26 AM   #134
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,385
No, you don't lose months of interest AND principal. Let's say the price is $99. You'll get $99 less commission plus accrued interest. So if the commission is $1 then you'll get $98... a 2% haircut but still less than what many bank CD early withdrawal penalties would be.

You'll still get interest from when you bought to when you sold.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Old 03-17-2024, 02:37 PM   #135
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Location: Upstate
Posts: 2,951
Quote:
Originally Posted by explanade View Post


1) I'm wondering if I have to put it out for sale in the secondary market through Fidelity and get bids back.

2) Or would it be based on the value displayed? For instance, all these brokerage CDs show a value under $100 so presumably it would be some value below the principal.
You will have to sell it. If there there are already bidders you could accept the bid (assuming they are bidding for at least that amount of the issue that you own). If not, you will have to solicit bids.

You will get whatever was bid plus accrued interest.

If the bids are bad and this is a non-IRA account, you might consider going on margin to pay your taxes on 4/15 and paying off he margin when the CD matures. This is a financial calculation, i.e. how much haircut plus lost interest vs. the margin expense between 4/15 and June (when it matures).
copyright1997reloaded is offline   Reply With Quote
Old 03-18-2024, 07:16 PM   #136
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2008
Posts: 7,438
Accepted a bid, 99.855 but it turned out to be 99.757. I don't know if that reflects Fidelity commission for selling early.
explanade is offline   Reply With Quote
Old 03-20-2024, 07:16 AM   #137
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Location: Upstate
Posts: 2,951
Quote:
Originally Posted by explanade View Post
Accepted a bid, 99.855 but it turned out to be 99.757. I don't know if that reflects Fidelity commission for selling early.
Typically there is a $1 per 1k notational fee. So yes, there is commission. THe effective yield (after the commission) is shown on the preview screen.

This is why I suggested you compare your net hit of selling early vs. doing a short term margin loan in a non-tax-deferred account.
copyright1997reloaded is offline   Reply With Quote
Old 03-26-2024, 05:29 PM   #138
Thinks s/he gets paid by the post
 
Join Date: Jan 2019
Location: Sunny California
Posts: 2,624
Did I really survive this call on my first callable CD purchase?

This CD is callable tomorrow so since I have not heard anything from Fidelity yet, is it safe to assume it's not going to be? It only has 3 more months to maturity.

46656MED9
JPMORGAN CHASE BK N A CD 5.45000% 06/26/2024

5.450% 06/26/2024
Call Schedule
JPMORGAN CHASE BK N A CD 5.45000% 06/26/2024
Call Defeased
NO
Continuously Callable
NO
Callable After
Next Call Date *
03/27/2024

Call Date Call Price Call Type
12/27/2023 100.000 Par Call
03/27/2024 100.000 Par Call
RetiredAndLovingIt is online now   Reply With Quote
Old 03-28-2024, 08:31 AM   #139
Full time employment: Posting here.
Earl E Retyre's Avatar
 
Join Date: Jan 2010
Posts: 540
Quote:
Originally Posted by Earl E Retyre View Post
Bingo. That's it. I just checked and the next call date on my JPM 5.5% is 3/16 so I am guessing it will be called then. Thanks!
I just checked and my 5.5% JPM brokered CD did get called as expected.

What I don't understand is that they did not send me any notifications - no email, no texts. I believe I have all check boxes set up for alerts under my profile. So, if I did not happen to check my balances to see that my cash increased in my settlement account, then I would not have known. Does anyone know if there is a setting somewhere that I am missing to get alerts for called CDs?
Earl E Retyre is offline   Reply With Quote
Old 03-28-2024, 09:59 AM   #140
Thinks s/he gets paid by the post
Gotadimple's Avatar
 
Join Date: Feb 2007
Posts: 2,613
Quote:
Originally Posted by Earl E Retyre View Post
I just checked and my 5.5% JPM brokered CD did get called as expected.

I am missing to get alerts for called CDs?
I can't comment on why you didn't get notified. If it were me I'd call the broker and ask why you weren't notified.
__________________
Only got A dimple, would have preferred 2!
Gotadimple is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 3 (0 members and 3 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


» Quick Links

 
All times are GMT -6. The time now is 08:58 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.